Junior ISA (JISA)

A simple way for you, and your child, to build up a savings pot for when they turn 18

Junior ISA (JISA)

Foresters Junior ISA (JISA) FAQs

Want to know more about investing for your child or grandchild’s future in our Junior ISA?

Take a look at the most frequently asked questions in our FAQs below. Simply click 'Show info' to display the answer. If you have any questions that are not answered here, please contact us

About the Junior ISA (JISA)

What is a Junior Individual Savings Account? (JISA)

A savings account that allows a child to be saved for in a tax efficient manner

What are the tax rules that apply? 

Within a tax-efficient JISA you can invest in one or both of the following two forms of savings with any provider

    1. An investment in stocks and shares or as part of a life insurance policy.
    2. A cash deposit account.

The Foresters Friendly Society JISA is an investment into a life insurance policy and is categorised as a Stocks and Shares JISA. This means you cannot invest in the Foresters Friendly Society JISA, if the child already has a Stocks and Shares ISA with another provider. 

Who is The Foresters Friendly Society JISA suitable for?

The JISA is suitable for any child aged under 18. 

Who can open a Junior ISA (JISA)? 

A JISA can be set up by anyone with parental responsibility for a child who is a UK resident. The person opening the account will be the Account’s registered contact until the child turns 16 or the registered contact signs over responsibility to another adult with parental responsibility. Children aged 16 or 17 can open a JISA for themselves.

Only one stocks and shares Junior ISA and one Cash Junior ISA can be taken out for each child subject to the annual limit set by the HMRC for Junior ISAs (£4,260 for tax year 2018/2019). HMRC rules do not allow the holding of a Child Trust Fund (CTF) and a JISA at the same time.  If the named child has a Child Trust Fund, a JISA can only be opened if the CTF is transferred into the JISA.

Who can invest in a Junior ISA (JISA)? 

The Junior ISA can only be opened for the child by the parent, guardian or person with parental responsibility for that child. Once the JISA is set up, anyone can contribute into a Child’s Junior ISA, for example parents, grandparents, uncles, aunts. Children aged 16 and 17 can open a JISA themselves.

Can withdrawals be made from a JISA?

Before the child turns 18 there is no legal right of access to the funds held within the JISA. Therefore any value held within the plan is locked in until the child turns 18.

What is a Market Value Reduction?

This is a deduction we may apply when the policyholder fully cashes in the Junior ISA when they have reached 18 and the Junior ISA has been converted to an Adult ISA, or when the Junior ISA is transferred to another provider. Its purpose is to be fair to both plan holders leaving the fund and to those staying by ensuring the cash-in value is not unfairly higher than the market value of the plan’s assets and that a fair share is left for the remaining plan holders. The adjustment, if made, will reduce the value of the plan at that time and in some circumstances could mean you get back less that you have paid in. We will never apply an MVR on death.

How are Bonuses decided? 

Depending on how the underlying assets in each fund perform and the costs incurred, at the end of each year we aim to declare an annual bonus. In addition, when you decide to cash in your plan we may add a final bonus depending on the overall investment growth that has been achieved and expenses incurred.

Bonuses are added as a result of the growth performance of the underlying fund. This is different from a Bank or Building Society account or Cash ISA where your savings can grow as a result of the interest added to your account. Although in some investment conditions the growth in the Foresters Friendly Society JISA might not be as much as that on an interest paying account, investing in this way means there is a potential for growth over and above the level which might be achieved on interest–paying accounts.

The addition of bonuses is not guaranteed and therefore it is possible that your JISA might not receive any annual and /or final bonus

How can I close my child’s JISA?

After your application is accepted you will receive a statutory notice of your right to cancel. You will then have 30 days from the commencement date of the JISA, or the date the notice is received, whichever is later, in which to change your mind. 

    • If this was a non-advised sale a full refund of monies will be paid.
    • If this was an advised sale where an adviser fee was paid from your investment, all the money invested into the JISA will be returned, excluding any fee which will already have been paid to your financial adviser.

You can cancel your child’s JISA by completing and returning the cancellation form to Foresters Friendly Society, Foresters House, 29-33 Shirley Road, Southampton, SO15 3EW. 

I'm not sure if a Junior ISA is right for me. What should I do?

If you're unsure as to the suitability of this product you should seek advice from a Financial Adviser. You may have to pay for this advice.

Payments into the plan

What is the minimum payment?

You can choose to contribute regular amounts from just £10 per month by Direct Debit; invest lump sums or; if you prefer, you can use a combination of both up to a maximum of £4,260 this tax year.

If you wish to invest lump sums, a minimum £500 lump sum contribution is required to open a JISA, then top ups of at least £50 can be made

What is the maximum payment?

To benefit from tax exemption under current legislation, the maximum level of total contributions for a Junior ISA is £4,260 this tax year.

Can I choose how much I pay?

You can set up regular contributions, invest lump sums or combine both options. Regular payments will be collected by Direct Debit from your bank.

You can stop, start and change the level of contributions whenever you like, and family and friends can pay in too.

How do I top up a Junior ISA?

You can top up your child’s Junior ISA with lump sum or regular monthly contributions. The combination of these cannot exceed the maximum Junior ISA allowance in any one tax year. If you are uncertain about the maximum increase in contributions you can make for the rest of the tax year, please call us on 0800 988 2418.

Regular Contribution Top Ups

If you wish to set up regular contribution payments into your child’s Junior ISA, this can be done by setting up a Direct Debit:

Direct Debit

Download the Junior ISA Top Up Form complete the Direct Debit instruction specifying the monthly contributions you would like to make. Then send it back to us and we will do the rest for you.

Lump Sum Top Ups

Lump sum contributions can be made:

1. By debit card payment

      • Top up by phone
        Call us on 0800 988 2418 and we can take a payment from your debit card over the phone.

2. By cheque

Download and complete the Junior ISA Top Up Form , attach a cheque for the lump sum contribution amount, then send it back to us and we will do the rest for you.

What happens if the child dies before reaching 18?

The value of the policy would be paid into the child’s estate if the child were to die before reaching 18. A Market Value Reduction (MVR) would not be applied to the proceeds. 

What happens if the child becomes terminally ill?

If the child is certified as terminally ill by a medical practitioner and in accordance with HMRC rules an application can be made to HMRC to have the funds released from the policy. A Market Value Reduction would not be applied to the policy. 

What happens if the person paying contributions dies before the child reaches 18?

If the person paying contributions dies before the child reaches 18 another person can continue paying into the policy.

Returns on the plan

Where is the money invested?

Any money you contribute into a Foresters Friendly Society Junior ISA is invested in the Order Insurance Fund. This is a With Profits fund. By spreading the money paid into the fund across a number of different types of investments you benefit from exposure to a range of asset classes which may include equities (company shares), fixed interest bonds (government and company), property and cash.

A further advantage of this approach is that if the return of any one asset type is poor, your investment may be protected from the full impact of this fall as the other assets forming part of the overall investment may perform better. Thus a fall in value of one asset class (e.g. shares) may be cushioned by potentially better performance in another asset class (e.g. property).

What interest does the plan pay?

The Foresters Stocks & Shares Junior ISA does not pay interest. Instead, the Order Insurance Fund provides your plan with the potential for growth by way of bonuses. What growth your Junior ISA receives will depend on the performance of our Order Insurance Fund. The investment performance cannot be guaranteed.

How safe is my money?

You'll be pleased to hear that our funds have grown steadily over the years and our financial position remains strong. (Source: Reports & Accounts 2017). However, note that past performance is not a guide to the future.

However, if in the unlikely event that Foresters Friendly Society were to be declared insolvent, you would be able to make a claim under the Financial Services Compensation Scheme.

About Foresters Friendly Society

Who is Foresters Friendly Society?

Foresters Friendly are a mutual society, founded in 1834 by ordinary people with a common purpose - to support each other through financial and other difficulties. 

We've been looking after our members, and their finances, for over 180 years, offering care and protection through relevant affordable financial products. 

Since 1834 our aim has been to be open, approachable, honest and fair, treating all our members as individuals. 

We always put the interests of our members first.

What is a Friendly Society?

Friendly Societies have been around for hundreds of years. They were founded on the idea of mutuality - that if a group of people contributed to a mutual fund, an individual within the group could benefit in a time of need. The principles still apply - friendly societies are owned by, and operate in the interests of, their members. Unlike public limited companies, they use revenues to the benefit of their members rather than distributing profits to their shareholders.

How do Mutuals perform, compared to PLCs?

With no shareholders to answer to, mutual societies can ensure their profits are only used for their members’ benefit by sharing this amongst members, or re-investing to provide potentially better returns, better value or higher levels of service.

Over the last 10 years, the average mutual with-profits policy produced 29% more than an equivalent from a PLC insurer – that’s around £11,400 more after 25 years for a £50 per month policy.

(Source: Association of Financial Mutuals:  AFM Key facts about mutual insurers and friendly societies June 2015)

What is a Mutual?

UK financial organisations are either authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) and can be regulated by one or both regulators, and are either mutuals or public limited companies (PLCs). Unlike a PLC, a mutual organisation has no external shareholders to pay in the form of dividends and does not seek to make large profits or capital growth.

Mutual organisations are owned and run for the benefit of their members and their profits are usually re-invested for the benefit of members, although some may be used for internal finance to ensure the mutual is sustainable, safe and secure.

Today, UK mutuals account for over £116 billion in revenue every year and 1 in 3 people in the UK are a member of at least one mutual. (Source: The Mid-Term Mutuals Manifesto 2013  and the Mutual 2013 Yearbook )

Membership and extras

I read somewhere about benefits - but I imagine I pay for those somewhere?

By taking out a Junior ISA, your child automatically becomes a Foresters member. As a mutual, we don't have to answer to external shareholders. Instead, we use all our profits to benefit our members. All Foresters customers can take advantage of Foresters Extras, a range of benefits we offer at no additional cost.

Does my child get any additional benefits as a Foresters member?

All our members benefit from Foresters Extras, a range of benefits we offer at no additional cost.

Help and support

Where can I get help?

For help and support, please contact Foresters Friendly Society.

Foresters Junior ISA – Foresters Extras >>